Ex-Bundesbank Chief Says Greece Will Never Repay Debt, Says Bailout All About "Rescuing Banks And Rich Greeks"

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Tue, 05/18/2010 - 12:15 | 358281 buzzsaw99
buzzsaw99's picture

Headline = No shit Sherlock.

Tue, 05/18/2010 - 12:17 | 358283 Citizen of an I...
Citizen of an IKEA World's picture

Rescuing "banks and rich Greeks?"  Well, I don't know about the latter, but as to the former--in the long run--EPIC FAIL.

Tue, 05/18/2010 - 12:17 | 358286 Hondo
Hondo's picture

I believe this totally

Tue, 05/18/2010 - 12:20 | 358290 ZackAttack
ZackAttack's picture

I never assumed it was anything else.  

For the last two years, in order to predict what will happen, all you've had to do is ask "What would most benefit the mega-banks?"

Tue, 05/18/2010 - 12:37 | 358345 SWRichmond
SWRichmond's picture

This is the principal reason I'm in the "printing money" camp.  It is less destructive to the banks than would be a general and self-reinforcing deflation.

Tue, 05/18/2010 - 12:55 | 358405 pan-the-ist
pan-the-ist's picture

The next step seems to be the wealthy class (elites) flight to gold and other depression resistant assets before the ship sinks.  I'd try to buy a seat on a life boat if I had the money.

Tue, 05/18/2010 - 13:40 | 358514 weinerdog43
weinerdog43's picture

"...if I had the money."

But you do!  Even buying a Silver Eagle a week helps both your lifeboat as well as helps hasten the inevitable.  Payday for me is Thursday, and I'm going to pop over and get about $50 worth of junk silver.  The author mentions that the Germans will eventually get pissed off enough to do something.  Wait till that day hits the US with millions of pissed off, unemployed, armed Americans running around. 

Tue, 05/18/2010 - 12:26 | 358301 ratava
ratava's picture

You can either fight the speculators or use them. If there was a decisive action along the lines of "Greece violated the rules and has to pay." sometime in late March/early April, there was an army of Europeans willing to jump on the long Eur wagon on what they have seen as a buying opportunity caused by media bubble. Now that we blew through both 2009 and 2008 bottoms, I would rather chop my arm of than go long and watch the idiots at the wheel make another selfish non decision that will cost me money. The Euro is headed to parity and the Eurocrat cowards only have themselves to blame.

Tue, 05/18/2010 - 12:25 | 358305 Quantum Noise
Quantum Noise's picture

It is quite amusing to see these bankers develop both the ability to tell the truth and the ability to understand basic arithmetic AFTER they retire... so well done, Herr Pohl.

Tue, 05/18/2010 - 12:28 | 358315 chindit13
chindit13's picture

There is a fascinating ideological change taking place in the world today, as Asia gears up to lead the world and the West to fall into a kind of coolie state to the new converts to capitalism.  At a time when the Western world is saying that efficient allocation of capital is wrong, and bailing out the well connected at the expense of the masses is the way to run a society, China is taking its once richest comrade and tossing him in jail for 14 years for corruption.

The West bails out losers and criminals;  the East now jails criminals.

In the long run, who looks as if they are running a more successful strategy?

Us treaded-on serfs of the West have two choices:  accept our lot as coolies to the new capitalists, or overthrow---by violent means if necessary---the elite who oppress us and condemn us to slavery.  We have little left to lose.

Off with their heads!

Tue, 05/18/2010 - 13:15 | 358458 Steaming_Wookie_Doo
Steaming_Wookie_Doo's picture

Is there a black van parked outside your house yet?

Is it just me, or are the rest of you waiting for the last act of Fight Club to be played out? My bet's on Sept-Oct timeframe.

Tue, 05/18/2010 - 12:27 | 358316 Kataphraktos
Kataphraktos's picture


Translation: Greek losses due to tax evasion amount to 40% of GDP.

Forty. Percent. Of. GDP.

Tue, 05/18/2010 - 12:28 | 358317 doomandbloom
doomandbloom's picture

is this really news for us here on ZH?

Tue, 05/18/2010 - 12:44 | 358363 Al Huxley
Al Huxley's picture

The news is the public admission by a former senior official in a prominent German magazine.  Social unrest, coming soon.

Tue, 05/18/2010 - 12:31 | 358327 exportbank
exportbank's picture

The Germans may allow the rescuing of a German bank but the next opportunity they get to vote they'll show the door to Merkel for falling for this scam to rescue French and Greek banks.

Tue, 05/18/2010 - 12:32 | 358332 bugs_
bugs_'s picture

rich greeks.

Tue, 05/18/2010 - 12:35 | 358342 snowball777
snowball777's picture

OT: An interesting talk (by a probable Marxist) with some interesting perspectives on the finance, sov debt, etc crises...


Tue, 05/18/2010 - 12:38 | 358351 Brokenarrow
Brokenarrow's picture

This is how wars start.

Tue, 05/18/2010 - 12:46 | 358370 LeBalance
LeBalance's picture

its.....massive distraction time.  Time for a "Tim Osman" clone to "fill-in your false flag wet dream."

Tue, 05/18/2010 - 12:52 | 358390 snowball777
snowball777's picture

A nice cover of a classic...


Tue, 05/18/2010 - 13:08 | 358433 economicmorphine
economicmorphine's picture

Why is Pohl picking on Greece?  Portugal, Spain, Italy, Ireland and the Baltics aren't going to ever pay their debt back either. Neither are France the UK, Japan or the United States.  Oh how I wish someone on the world stage had the cojones to actually say what everyone already knows.

Tue, 05/18/2010 - 13:09 | 358437 Portugal
Portugal's picture

This is not news. Its copied from last week, that was copied from the week before.  

Tue, 05/18/2010 - 13:10 | 358440 M.B. Drapier
M.B. Drapier's picture

Quick, name a European bank that's up to its eyeballs in exposure to Greece. Now name one such bank that's been increasing its exposure to Greece in the past few weeks.

Tue, 05/18/2010 - 13:15 | 358456 DaveyJones
DaveyJones's picture

"Bailout All About "Rescuing Banks And Rich"

where have I heard this before? The only fitting phrase for the group is "bail" 

Tue, 05/18/2010 - 13:38 | 358509 Captain Obviousness
Captain Obviousness's picture

I've been pounding this into the head of anyone who will listen.  Don't call it a bailout of Greece.  It is a bailout of the banks and funds that own Greek debt.  All of these bailouts are ultimately about funneling taxpayer money to banks.  It's so simple and so obvious, but everyone gets bogged down in talk of "contagion" and "global instability."  Fucking banksters, the world will not collapse if you get the shaft.

Tue, 05/18/2010 - 13:41 | 358519 junkyard dog
junkyard dog's picture

Banks, we talk about Greek banks as though they are important in Greece. What is important in Greece is shipping.

The sea, the tourist and shipping. A vacation paradise; they do not need the Euro, and the Euro does not them. They have been around longer than most, and will be for eternity. The Greeks are following a game plan that works; one where they do not have to work, until 2 days before they die, like in this country. Everything was going to plan until some American backed crooks stole the bank's money. Now the Greek banks  want it back just like our banks wanted it back and got it. However, if the Greek banks are going to cause a change, to get this money, in a 4,700 year old plan that works, the tourist will be sightseeing while walking through blood and destruction.


Tue, 05/18/2010 - 13:52 | 358560 dmeier
dmeier's picture

I think officials around the world are using Richard Koo's playbook. When faced with a systemic banking crisis and weak demand for funds, non-performing loans and investments must be written off slowly and capital must be injected into the system.

Tue, 05/18/2010 - 13:57 | 358581 Bruce Krasting
Bruce Krasting's picture

Pohl is highly respected in Germany. This is a big deal.

Tue, 05/18/2010 - 14:05 | 358614 AllYourBaseAreB...
AllYourBaseAreBelongToUs's picture

Looking forward to being a millionaire!


(Oh wait, everyone else will be too?)



Tue, 05/18/2010 - 15:39 | 358928 BlackBeard
BlackBeard's picture

Junior high kids have more commonsense than these conflicted politicos.

Tue, 05/18/2010 - 15:45 | 358941 Reductio ad Absurdum
Reductio ad Absurdum's picture

It is disingenuous to "cherry pick" from Poehl's statements:

TD: Look for the EU and the euro to be a thing of the past.

Poehl: In my opinion, the euro is in no danger.

(Either Poehl is smart and you have to consider everything that he says as being plausible, or Poehl is dumb and you can disregard everything that he says. But don't just pick the ideas that you already believe and ignore the rest.)

Tue, 05/18/2010 - 18:57 | 359307 Celsius
Celsius's picture

The BundesWehr will take back what the Germans have lost... It's the Casus Belli to let the Panzers loose through southern Europe. The German's tried it the peaceful way via the financial markets for 65 years. Now, they will pick up the sword! In the name of order and stability for the European Empire they will march. The PIGS will fall to France (Portugal and Spain) and Germany (Italy and Greece) in a matter of days. The Franco-German EURO empire will begin. Europe has been waiting for the rise of a new Roman Empire!

Wed, 05/19/2010 - 00:20 | 359979 Dr. Goose
Dr. Goose's picture

Says Herr Pöhl, ex-Bundesbank president, 

"This bailout's akin to embezzlement

Greek tycoons and French banks 

Owe my countrymen thanks 

For this really regrettable precedent."



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